Essar successfully refinances

Essar Energy, the India-focused energy company, said it had refinanced a 450 million dollar bridging loan that was due to be repaid in December 2012.

The company said a new $300m three year secured loan facility was being provided by a consortium of banks who were the lenders under the original deal.

The remaining $150m will be made up by cash from the company itself.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Separately, Essar has also signed a $250m three-and-a-half year subordinated unsecured loan facility with Essar Global Limited for "general corporate purposes".

The latter firm owns three quarters of Essar Energy.

Chief Executive Naresh Nayyar said the deal provided the company with additional debt facilities including an extended maturity profile and demonstrated continued strong support from its banking group and major shareholder.

"The successful commissioning of the Vadinar refinery and near completion of three of our major power plant projects marks an inflexion point in our capital expenditure cycle and will see a significant improvement in the cash flows within our businesses," he said.